What Is the Real Rate of Return If the Risk-Free

question 29

Multiple Choice

What is the real rate of return if the risk-free rate is 4 percent and the expected rate of inflation is 2.5 percent?

• A)0.43%
• B)1.50%
• C)6.35%
• D)1.46%

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Definitions:

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that poses little to no actual danger, but leads to significant avoidance behavior.

Fear of Flying

An anxiety disorder characterized by an extreme dread of flying in airplanes.

Bipolar Disorder

Bipolar Disorder is a mental health condition characterized by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).